Asian session: The U.S. Dollar Index reached a two-week high

The U.S. Dollar Index reached a two-week high as U.S. Congressional leaders were said to be open to a short-term increase in the nation’s debt limit. House Republican and Senate Democratic leaders are open to a short-term increase in the debt limit, said congressional aides of both parties who spoke on condition of anonymity. The movement comes after House Democrats met with President Barack Obama at the White House. A small group of House Republicans are scheduled to meet with the president today.

The yen slid versus most major peers before Bank of Japan Governor Haruhiko Kuroda speaks today. The BOJ’s Kuroda is scheduled to speak today at the Council on Foreign Relations in New York. In April, he announced a plan to buy more than 7 trillion yen ($71.6 billion) of Japanese government bonds per month to achieve 2 percent inflation in two years.

Australia’s dollar weakened after data showed a smaller-than-forecast gain in employment. Australian employers added 9,100 jobs in September, government figures showed today, fewer than the 15,000 gain estimated by economists surveyed by Bloomberg News. The unemployment rate dropped to 5.6 percent last month from a four-year high of 5.8 percent in August. Analysts had forecast the figure would be unchanged.

Demand for the euro was supported ahead of data today forecast to show industrial output gained in France and Italy. In Europe, industrial output in France probably rose 0.6 percent in August from July, the first increase in four months, according to the median estimate of economists surveyed by Bloomberg News. Factory production in Italy is forecast to have gained 0.6 percent in August. The nations have the biggest economies in the euro region after Germany.

EUR / USD: during the Asian session the pair fell to $ 1.3485

GBP / USD: during the Asian session, the pair fell to $ 1.5910

USD / JPY: during the Asian session the pair rose to Y97.80

There is no UK data set for release, but the Bank of England October policy decision is expected at 1100GMT. The chances of a change in policy are very slight indeed. It is also unlikely that the MPC will issue a statement giving their views on market rate expectations after MPC member Paul Fisher said that the BOE did not want to give a running commentary on market rate expectations.